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Mortgage finance remains a congestion zone

This is according to the latest Winkworth plc Market Analysis report which says the average asking price of Winkworth properties rose from £494k to £532k nationally and from £518k to £551k in  London (August-November 2010) .

However in Prime Central London prices fell from an average of £971k in July to £878k in November.

The demand for rentals continues to outstrip the supply with the number of rental properties on the market 45%  lower than one year ago. Consequently the average monthly rental prices rose 11% from January 2009, ending at £2,096 in November.

Dominic Agace, CEO of M Winkworth Plc, said:

‘There is much debate concerning the timing and extent of interest rate rises in 2011, but the consensus is clearly that the cycle is now bottoming out. While this will have an impact on owners and buyers, particularly those keen to lock in fixed rate products in anticipation of this change, it is the availability of finance which remains a key determinant of the level of activity in the housing market in 2011. Until the banks feel comfortable to lend again, particularly at the bottom end of the market, volumes are likely to remain constrained. Against this backdrop we will continue to grow our business cautiously in 2011 through the opening or acquisition of new franchises. Our position as a leader in the London market enables us to benefit from the concentration of UK activity which takes place there, while we also expect to be busy in our country house business, meeting the demand of families looking to leave the capital in search of extra space.’

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